US initial jobless claims fell to a level of 208,000 in the week ended July 11 from an upwardly revised 216,000 level in the previous week, compared with expectations for a level of 217,000 in survey of analysts compiled by Bloomberg.
The four-week moving average fell by 4,750 to 214,250 after declining by 3,500 to a level of 219,000 in the previous week.
Insured jobless claims fell by 16,000 to 1,805,000 in the week ended July 4.
The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.
A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.